How to Raise Finance for Your Commercial Property Development Project

Commercial property development offers significant opportunities, from office refurbishments and retail conversions to large-scale industrial or mixed-use schemes. Yet the capital required is substantial, and securing the right finance can be the difference between a project that thrives and one that stalls.

Traditional bank lending is no longer the default solution, and developers have begun to explore flexible, specialist property finance tailored to the commercial market.

Key finance options for commercial development

Commercial property projects vary widely, and so do the finance structures available. The right solution depends on whether you are redeveloping an existing site, undertaking a ground-up build, or acquiring premises to hold as an investment.

– Development finance provides staged drawdowns for construction or major refurbishment, often covering both land acquisition and build costs.

– Bridging loans can secure a site quickly or provide interim funding while long-term finance is arranged.

– Revolving credit facilities are perfect for site acquisitions or property auction purchases.

– Commercial mortgages may suit projects where the completed property will be retained as a long-term asset.

Each comes with different terms, security requirements, and repayment structures, so understanding your project’s cash flow and timeline is essential before deciding.

How to prepare your property finance proposal

Commercial developments require detailed preparation to secure finance.

Lenders will expect:

– A professional business plan with financial forecasts, an exit strategy, and a clear return on investment

– Evidence of planning permission or significant progress towards securing it

– Accurate valuations and cost breakdowns from surveyors or contractors

– Details of your track record or relevant project experience

Even if this is your first commercial development, presenting a well-researched plan backed by expert advice can improve your credibility and strengthen your application.

Why you need specialist finance for commercial property projects

Commercial property projects are often more complex than residential builds, with longer timescales, higher upfront costs, and stricter planning requirements. Using a finance product that matches the rhythm of your development is vital.

Development finance, for example, releases funds in stages based on build progress. This keeps your interest payments lower than if you had drawn the full facility upfront. Bridging finance, on the other hand, gives you speed when you need to move quickly on a site or secure a property before refinancing.

The UK commercial property sector remains a major part of the economy, valued at over £1 trillion, with strong demand in logistics, industrial space, and flexible workspaces. With the right funding structure, you can take advantage of this demand while managing risk effectively.

Common challenges developers face

Commercial projects often involve complex funding needs, from land acquisition to fit-out. Cash flow gaps can emerge if funding is not properly staged, and unexpected costs can quickly erode margins. Timing is another challenge, as opportunities to secure prime sites are often time-sensitive.

By working with specialist lenders and brokers, you can access funding structures that align with these challenges, providing both the flexibility and speed commercial property development requires.

The next steps

Raising finance for commercial property development is about more than finding capital. It is about structuring the right funding to match your project, ensuring cash flow is maintained throughout, and positioning yourself for long-term returns.

If you are planning a new commercial development, exploring specialist finance options early will help you secure the resources to deliver on time and within budget.

Jones & Co can support your business in identifying the right option for you and securing the right funding with specialist lenders.

Speak to our commercial finance brokers

Insights

Finance in the news

View all articles

Invoice Finance vs Business Loans: Which Makes More Sense?

Every business needs funding at some point, whether to manage cash flow, invest in growth, or handle unexpected expenses. Two of the most common routes are invoice finance and business loans. Both can provide valuable support, but they work in very different ways.

How Refinancing Can Turn Business Debt into an Opportunity

Debt can feel like a weight on your business, holding back growth and adding unnecessary pressure. But with the right strategy, that same debt can become a stepping stone toward stability and expansion. Business refinancing is not about starting over. It is about taking control of your financial position and making it work harder for you.

Five Signs Your Business is Ready for External Finance

Every growing business reaches a point where its ambitions outpace its available cash. Whether you’re expanding, managing seasonal fluctuations, or seizing a new opportunity, external finance can be the bridge between potential and progress.

How Business Finance Support in Leeds Is Driving Growth Across Tech, Manufacturing, and More

Leeds has become one of the UK’s fastest-growing business hubs. From thriving tech start-ups to long-established manufacturers, the city is seeing record levels of innovation and investment.

Commercial Property Finance Explained: 6 Things Business Owners Need to Know

Commercial property finance can unlock growth, whether you are buying premises, developing land, or investing in property as part of a wider portfolio. For business owners, understanding the options available is the first step in making confident and strategic decisions.

How Birmingham’s Transport Boom Is Reshaping Business Finance in 2025

Birmingham is entering a new era of growth. With HS2 pushing forward and West Midlands transport expanding rapidly, the city is becoming one of the UK’s most connected business hubs. For entrepreneurs, established firms, and growing SMEs, this transformation creates new opportunities and new demands on business finance.

What Is a Merchant Cash Advance and How Does It Work?

Ever had a busy week of card sales, only to feel like the numbers don’t add up when it comes to the cash in the bank? You’re serving customers and turning over sales, but still hitting a wall when it comes to covering bills or upgrading equipment.

5 Benefits of Business Refinancing Every Director Should Understand

For many business owners, the word refinancing raises alarm bells. It can feel like admitting your company is in trouble. However, the reality is very different.

Refinancing isn’t a last resort. Done right, it’s an effective way to take control and strengthen your company’s financial position.

Alternative Lending: Why Banks Are Bottlenecking Growth (And What To Do Instead)

Banks have become gatekeepers instead of growth partners.

As funding pipelines dry up, alternative lending is stepping in to do what traditional finance won’t: actually support ambitious SMEs. It’s a massive, long-overdue rebalancing of power in the business finance world; a lifeline for UK businesses who need access to capital NOW.

Financial Services

Business Loans

Asset Finance

Tax Funding

Merchant Card Finance

Business Refinancing

Property Finance

Invoice Financing